IPO - Initial Public Offerings

While IPOs can provide promising returns if the company proves to grow substantially, it is important to carefully assess risks, fundamentals, and prevailing marketplace conditions before partaking. Thorough due diligence is paramount.

Yes, investing in IPOs risks losses should the stock price fall below the offer price after listing. Poor company performance that disappoints market expectations can also trigger losses on IPO shares. Both scenarios underline the uncertainties of investing early in a company's public journey.

Technically, yes, immediately upon exchange debut, newly public shares allow sales. However, institutional shareholders are subject to lock-up periods restricting the quick disposal of sizable portions. Furthermore, prudent investors often prefer observing a stock's initial public performance before acting, lessening immediate selling activity.

The price of the IPO is determined in the book-building process by determining the demand and supply. It is defined as the price at which the shares are floated to begin trading for the first time post-IPO.

Spanning several days, the subscription window grants prospective shareholders the opportunity to apply for IPOs. Typically lasting three to five days, this phase establishes initial share allocation before exchange commencement.

For each unique IPO, the company stipulates the lowest number of shares an applicant may seek to purchase. This minimum order quantity can vary between issues.